Word on the street is that Microsoft's partner on its next-generation Surface Pro series 2-in-1 and notebook products including the Surface Pro 5, Surface Book 2 and new Surface-brand desktops (which are likely all-in-one PCs) will be Pegatron.

According to Chinese-language Economic Daily News, deep throats told them that most of the new gear will be made by Pegatron although some smaller jobs might be punted on to others. It will be a flagship sort of deal with Vole introducing new upgrades and functions for Windows 10 in time to run the beasts.

Microsoft is expected to release three sizes for its Surface desktops: 21, 24 and 27-inch models, all featuring specifically designed mouse and keyboard as well as press-sensor stylus and Perceptive Pixel multi-touch technology.

The new Surface Pro 5 and Surface Book 2 are expected to adopt Intel's Kaby Lake-based processors and bio-sensor technologies, the paper added.

According to Digitimes the new Sony game console is to be launched on 10 November. According to its deep throats, Foxconn has undertaken trial production of the NX, a new Nintendo games console.

Foxconn and Pegatron used to equally share OEM production of PS consoles, but in 2016 Pegatron is responsible for nearly 70 percent of production. Pegatron and Foxconn will increase shipments of PS 4 Pro consoles in October and November to meet peak demand prior to the Christmas rush.

But there have been question marks about the true power of the PS4 Pro, which has 4.2 teraflops of GPU power compared to six for the Xbox One Scorpio. Microsoft’s newest machine also sports 320 GB/s of memory bandwidth and eight CPU Cores.

Vole claims its Xbox One Scorpio will also be the only console that can offer true 4K gaming experiences, as well as hi-fidelity virtual reality.

Those suppliers who thought they were onto a good thing scoring a contract with Apple might be starting to regret it.

Jobs Mob has told its suppliers that they are going to have to cut their prices to prop up Apple’s profit margins.

According to Digitimes Apple has decided that rather than doing something radical, like invent a new product, or make its existing models more original, it is better to lean on suppliers.

Apple has been cutting its existing upstream component suppliers' quotes and seeking new component suppliers to maintain its high gross margins. Largan Precision, Foxconn and Pegatron Technology have already been affected.

Sadly, none of them have the power to tell Apple to "go forth and multiply" because they have grown too dependent on the fruity cargo cult. Losing Apple as a customer would send their stock prices plummeting.

Apple has been playing off the manufactures against each other and adding new ODM partners such as Wistron and Intel to put the fear of Jobs into any of its suppliers who might be thinking that Apple is not worth propping up.

In many ways the fierce competition in the Far East is acting in Apple’s favour. But there are signs that in Taiwan at least some of the suppliers have had enough of Apple’s bullying ways. Digitimes reports that some have decided that it is better to expand their orders from other clients and are improving their technologies, yield rates and product quality to widen their gaps with competitors.

Most of Apple’s elbows are being jabbed into the kidney's of Japanese-based component suppliers the most since their quotes are usually higher.However they have the advantage of the Chinese in that they are better quality.

Notebook ODMs are trying to balance the loses in their industry by expanding into the Internet of Things (IoT) industry.

According to Digitimes, Compal and Pegatron have established teams to specifically handle related development. Wistron has been seen writing out cheques to IoT players to build cooperation.

The logic is that as notebook sales have falling the IoT market has become a new front where notebook ODMs are looking to gain profits.

However the problem here is that IoT-related devices don’t have a clear business model, standards, or even a set position in the market.

The word on the street is they appear to think that this year will be the key year for IoT development – although none are particularly clear why.

Compal worked with Taiwan's Chang Gung University to develop smart clothes and healthcare devices for hospitals.

Apparently it got so excited by the idea that it has re-organized its business structure and separated into two major business groups: PCs and smart devices. The company also established several new departments for the IoT, healthcare and car electronics businesses.

Compal president Ray Chen previously noted that the company's wearable and IoT device shipments will grow significantly to 5.6 million units in 2016.

It also invested in industrial PC (IPC) player Avalue hoping its experience in healthcare system development and clients can benefit related businesses. Compal has also invested in General Life Biotechnology to acquire an over 50% stake and cross into the biotechnology sensor industry

Wistron is also looking to new investment targets that focus on IoT technology.

Claims that Fruity Cargo cult Apple might be making a fortune from its Surface Pro and its Iphone 6S are looking flaky after another of its partners reported lwer profits than expected.

Pegatron Technology has become an OEM for the iPhone 6s and was expecting increasing revenues, after all everyone in China is buying one, if you believe the Tame Apple Press.

But three of Pegatron's subsidiaries, metal-alloy chassis maker Casetek Holdings, IC substrate maker Kinsus Interconnect Technology and own-brand motherboard maker ASRock did not appear to get the memo.

Pegatron said that they are not performing as well as they should.Pegatron, which has landed orders for the 4.7-inch iPhone 6s, has been aggressively expanding its capacity to roll out 10 million units a month.

However, for some reason Pegatron's orders from Apple have not been much help for Casetek and Kinsus.

With orders for mid-range and entry-level handsets from China weaker than expected, investments in the printed circuit board (PCB) business suffering losses and competition from Japan-based Ibiden for iPhone 6 orders becoming fiercer.

ASRock has also not been performing well in the face of pricing competition from Asustek Computer and Gigabyte Technology. The Pegatron subsidiary is now looking to gain profits from server and industrial PC (IPC) motherboards, but so far the business has not made any major contribution and ASRock's EPS for 2015 may be more than halved.

Pegatron has been hoping to make a bit of cash flogging contact lenses and optical products, maybe it was short sighted to trust in Apple's reality distortion field.

While the IT industry has been performing as well as a contestant on the Italy's Got Talent show, Pegatron thinks that things will turn around this month.

Pegatron Technology chairman TH Tung told Digitimes the IT industry was slack during the first half of the year but many players are busy since early June.

He expects demand for IT products to be strong in the second half.

It is not that surprising the third quarter is the traditional peak season of the IT industry because of back-to-school sales and first-tier brands launch new flagship products in the quarter to attract demand.

Pegatron lost orders for the iPad mini 3 which went to Compal, which is proving to be a blessing because it can focus production on the 4.7-inch iPhone 6 which did much better in the first quarter.

The next batch of iPhones will be launched in September and Pegatron has expanded its plants in Kunshan in China to cope. Pegatron is rather dependent on Apple. The company's subsidiaries Kinsus Interconnect Technology, an IC board maker and Casetek, a chassis maker, are both suppliers of iPhone 6 products.

However Pegatron seems to love this sort of dependence. It has been trying to acquire orders for MacBook products and the Apple Watch, but Quanta appears to have dug in its heels.

Taiwan's Pegatron is opening up new factory space and recruiting workers in China to meet orders to manufacture the new iPhone 6.

According to the Commercial Times, production will begin in the second quarter. The report also did not specify the number of units that would be manufactured at the facility in Kunshan, on the outskirts of Shanghai, or how many workers would be recruited.

Pegatron and Hon Hai Precision Industry will be the other primary manufacturer of the new phone. It seems that the whole of Taiwan is abuzz with rumours about the iPhone6 it appeared that Samsung will be still making the chip for the beast.

It appears that Apple’s new unapologetically plastic iPhone 5C could be in trouble. Just a few days after it went on sale, it emerged that it was being outsold by the 5S by a margin of more than 3 to 1, in some markets much more.

Now it seems that Apple is being forced to cut production of the 5C and focus on the 5S instead. Although such “supply chain” rumours are nothing new, they tend to be very unreliable and we usually don’t report them – however this one comes from Reuters.

Apple has apparently cut orders from Pegatron by 20 percent, while Hon Hai Precision Industry saw its orders slashed by one third. However, it not all bad news – Apple actually raised orders for the 5S in Q4.

It all indicates that Apple’s internal iPhone 5C sales estimates were off the mark by a millions of units. The iPhone 5C is not a bad device, but it had the misfortune of being launched alongside the improved iPhone 5S, while the old iPhone 5 was still on sale – and it usually cost a bit less than the plastic iPhone 5C.

The big question is whether Apple will now be forced to cut the iPhone 5C price. We don’t think it will, at least not anytime soon. It’s not a flop yet, but it clearly didn’t live up to expectations.

It appears that Pegatron will be the primary supplier of Apple’s upcoming low-cost iPhone. So far Foxconn was in charge of iPhone production, but now it might be falling out of favour.

Pegatron has a long standing relationship with Apple and it already produces most of Apple’s iPad minis. It seems only logical that it would win the cheap iPhone contract and according to the Wall Street Journal, it did. Pegatron recently said that it would hire an additional 40,000 workers for an undisclosed project, which in all likelihood is the new low cost iPhone.

In the meantime Foxconn will continue to churn out the iPhone 5 and it will probably get the contract to build the next full cost iPhone, which will probably be called the iPhone 5S.

The new low cost iPhone seems rather interesting in our opinion. Although it is designed with emerging markets in mind, with an unsubsidized price of about $400 it should work in developed markets as well, especially as the smartphone market is starting to mature.

According to a reports emanating from Chinese media Foxconn is no longer the only supplier of iPads.

The outfit has reportedly lost 50 to 60 percent of iPad Mini production to rival manufacturer Pegatron. Economic Daily News reports that both suppliers are expected to churn out up to five million units of Apple new diminutive tablet.

The iPad mini is expected to roll out sometime next month, but in keeping with tradition Apple is not saying anything yet.

Additionally, Pegatron is reportedly being brought on board to help produce the iPhone and the first Pegatron built iPhones should appear sometime in Q4.